Category Archives: Negotiating

No conflict of interest?

Look closer

deal makingThe next time an agent, broker, lawyer or advisor offers to help and work on both sides of the deal, say “No thanks”.

If they try to tell you there is no conflict of interest for them, then reply, “Either you know you’re lying, or you do not. Either way, I’m disappointed. And the answer is still no thanks.”

They see no conflict of interest because their only interest is maximizing their own return from the deal. Sorry, but there is no other way to explain it.

They may try to sell the concept of mutual interests and you may get all parties including the advisors, to agree on a deal, but compromises will be made and you may simply have everyone being equally happy/unhappy.

Aligning mutual interests, or the naively optimistic cliché of “win/win”, may sound easy and look obvious. It’s not.

Be better. Do better.

Your Uncle Ralph, Del Chatterson

Visit LearningEntrepreneurship.com or contact DirectTech Solutions at www.DirectTech.ca for assistance on your strategic business issues, growth and profit improvement plans or your exit strategies.

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Click Here to check out Uncle Ralph’s books, “Don’t Do It the Hard Way” and “The Complete Do-It-Yourself Guide to Business Plans” Both are available online or at your favourite bookstore in hard cover, paperback or e-book.

The price is the price

Almost never 

And it’s a problem. Pre-occupation with price leads to bad decisions, if we miss the important factors that determine the value.

low price!We have all seen frequent examples of nonsensical pricing and have our own favourite stories of a deal we have boasted about, without admitting that it turned out badly.

TV ads. Only $19.95! Buy now and get another one for free, with a bonus carrying case, and free shipping. Beware of side effects. Certain conditions apply. What could go wrong for only $19.95?

Or my favourite story of a guided tour in Tangiers that led us to a local carpet manufacturer. Beautiful small handmade carpet, “retails in America for $2500, factory price only $700!” We negotiated him down to $200. (Including the tour guide’s commission, of course.) Wow, what a deal. Then on the way back to the tour bus, we met a street vendor with what appeared to be exactly the same carpet, for only $100. We said “no thanks,” until he came down to $20. Now we can boast of the price on two matching carpets. But I wonder, were they both mass-produced somewhere else, was one stolen?

And that’s the problem with focusing on the price. Consumers insist on it, but usually fail to ask why the price is so low. Is it cost reduced to the point of being unsafe and unreliable? Was it manufactured in a dangerous, environment-destroying factory using child labour? Who cares, at that price.

It may be the seller’s strategy, to attract or distract, with the price. But buyer beware, there is always more than the price to consider before you decide.

Be better. Do better.

Your Uncle Ralph, Del Chatterson 

Visit LearningEntrepreneurship.com or contact DirectTech Solutions at www.DirectTech.ca for assistance on your strategic business issues, growth and profit improvement plans or your exit strategies.

Join our mailing list at LearningEntrepreneurship.com for ideas, information and inspiration for entrepreneurs.

Read more articles at:Learning Entrepreneurship Blogs. 

Click Here to check out Uncle Ralph’s books, “Don’t Do It the Hard Way” and “The Complete Do-It-Yourself Guide to Business Plans” Both are available online or at your favourite bookstore in hard cover, paperback or e-book.